PHNOM PENH (AFP)--Prime Minister Hun Sen said Wednesday it was "highly premature" to estimate how much oil Cambodia might hold in undersea reserves, blunting earlier optimism that a petroleum windfall could pull the country out of poverty.
Officials had forecast that oil production could begin as early as 2009.
Block A alone, where Chevron (CVX) has exploration rights, was said by some petroleum officials to reportedly hold as many as 500 million to 700 million barrels of oil.
But to date no reliable reserve figures have been released and Hun Sen adopted a cautious approach towards any potential oil revenue.
"There has been much speculation about the extent of the petroleum resources of Cambodia. All I can say is that much of that speculation is highly premature," he told a biannual investment and trade meeting.
"The ultimate extent of our petroleum resources is very much unknown," he added.
Following the discovery of oil two years ago by the U.S. energy giant Chevron, Cambodia was quickly feted as the region's next potential petro-state, sitting on an estimated hundreds of millions of barrels of crude, and three times as much natural gas in six blocks located off of the coast.
Chevron, the most active of several firms preparing to further probe the fields off of Cambodia's coast, remains mum, saying only that its test wells have found that the oil and gas is "dispersed rather than located in one core field," according to a spokesperson.
Still, Hun Sen said the government was in discussions with investors about constructing a refinery in the coastal town of Sihanoukville, which will likely become the hub of any Cambodian oil sector.
"In case this project is finalized, the oil refinery plant will be in operation in 2010," he said.
Hun Sen again downplayed concerns that any oil revenue would evaporate in Cambodia's corrupt bureaucracy, echoing his earlier statements that a petroleum bonanza would not be a "curse" for the resource-rich country, which despite its natural wealth remains of the world's poorest.
"Revenues from those resources will enable Cambodia to self-finance productive investment in order to reduce poverty and promote economic growth," he said.
While GDP growth estimates remain some of the highest in the region at around 9.5% , nearly a third of Cambodia's 14 million people survive on only 50 U.S. cents a day or less.
Officials had forecast that oil production could begin as early as 2009.
Block A alone, where Chevron (CVX) has exploration rights, was said by some petroleum officials to reportedly hold as many as 500 million to 700 million barrels of oil.
But to date no reliable reserve figures have been released and Hun Sen adopted a cautious approach towards any potential oil revenue.
"There has been much speculation about the extent of the petroleum resources of Cambodia. All I can say is that much of that speculation is highly premature," he told a biannual investment and trade meeting.
"The ultimate extent of our petroleum resources is very much unknown," he added.
Following the discovery of oil two years ago by the U.S. energy giant Chevron, Cambodia was quickly feted as the region's next potential petro-state, sitting on an estimated hundreds of millions of barrels of crude, and three times as much natural gas in six blocks located off of the coast.
Chevron, the most active of several firms preparing to further probe the fields off of Cambodia's coast, remains mum, saying only that its test wells have found that the oil and gas is "dispersed rather than located in one core field," according to a spokesperson.
Still, Hun Sen said the government was in discussions with investors about constructing a refinery in the coastal town of Sihanoukville, which will likely become the hub of any Cambodian oil sector.
"In case this project is finalized, the oil refinery plant will be in operation in 2010," he said.
Hun Sen again downplayed concerns that any oil revenue would evaporate in Cambodia's corrupt bureaucracy, echoing his earlier statements that a petroleum bonanza would not be a "curse" for the resource-rich country, which despite its natural wealth remains of the world's poorest.
"Revenues from those resources will enable Cambodia to self-finance productive investment in order to reduce poverty and promote economic growth," he said.
While GDP growth estimates remain some of the highest in the region at around 9.5% , nearly a third of Cambodia's 14 million people survive on only 50 U.S. cents a day or less.
30 comments:
Yes, but we must stop agree to build any road at a cost of 1.8 billions for just 110km long. That type of deal will not bring us out of poverty, no matter how much oil we will find.
It's just Hun Sen's strategy to hide information so that he and his cronies will be able to steal the expected revenue at their likings. If he's honest, he should publish all lucrative contracts of oil for public scrutiny.
Is it HUN SEN ‘job to promote pessimism and the hopelessness? Why is it so hard to find out if there is not oil or not? Just pump the damn oil and let the data speak for itself!
Hun Sen never want transparency about the oil production since day one and he will continue to do his best to float rumor that Cambodia may not have oil to cover up the corruption issue and it would be easy for him to commit more corruption if Cambodian people believe his rumor!
The whole Southeast Asian country are making money of oil and gas and why not Cambodia? Hey! Cambodia doesn’t have oil and the poverty issue will push him out of power even faster! Dictator will never last!
Hey, I think he can only give out what information Chevron gave him.
Anyway, I am hoping we will sell only half and keep half for our own use, hehehe.
Any data or information can be manipulated to benefit one party!
Soon or later somebody will have to take out this dictator! The day of knowing after the fact is over!
Yeah, maybe by 3008.
You Animal Viet troller @7:16PM,8:35PM is from one same Viet troller. You must know that I am just like your shadow...I'll be everywhere you are here on KI-Media. I am in your face until you disappear from KI-Media. You animal Viet troller can no longer pretend to be khmer speaking for Khmer. I know who you are. I know how you write. You can no longer loiter, litter, or spam KI-Media...
Now, Go home Animal Viet troller!
Now, go home Animal Vietcong!
ITS TRUE, dictator will never last. dictator only brings shame to himself, and poverty to his people. One man shouldn't run the country only.
before you know it. the dictator will falls, even the aggressor vietcong.
I support the idea of building a refinery. Cambodia needs one to our profitability and jobs creating, at the same time Cambodia it will allow us to build storage for gas reserve to stabalize any influation in prices like we see now and for emergency purposes.
to maximize...
Hun Sen's definition to decrease corruption is inefficient and it is regarded as the most dangerous idea.
We cannot tackle corruption through increasing economic GDP. That idea is really stupid.
Nature of people, more wealth they accumulate and consume, more desire they are pursuing.
So, only a strong measurement under the corruption law and the will of political leaders to punish all corrupted officials and ministers so that can tackle rampant corruption in Cambodia.
KY
We honestly think that Mr.PM has no clue as always.
1000 American which will arrive next month with those navy ships to Cambodia still doesn't ring his bell. His head is still in China. Go figure out!
We need to get Mr. Sam rainsey on board as P.M next year and it's a must.
We aren't saying that he is hidding anything. He just plan dumb.
1:57, the idea of decrease corruption that associated with poverty by increasing GDP is not stupid. It make the corruption more controllable because people have choice. You can't fight it when people are desperate and have no choice. It is a proven idea. Look at how Taiwan transform from a war ruined island to as successful island by the KMT. There was on independence justice system, no transparency, no freedom of expression, ..., and rampant corruption. It is not impossible, dude.
On the other hand, you have no proof of fighting corruption that associated with poverty as suggested by your westerner trained people with anti-corruption law or whatever, and that is plain stupid.
Taiwan rewards their people based on merit, CPP government rewards people based on corruption; the more you give the higher position you get. How can you compare Cambodia to Taiwan? It's like comparing orange and apple. It will never have the same taste at last.
Nope, the KMT ruled Taiwan for the first 40+ years, and they are much worse than the Khmer Government.
5:26AM
Like 6:04AM mentioned, your example on Taiwan is exaggerating and lunatic.
Who do you call them corrupted people? Teachers, workers or farmers? In this world, we don't see any models that corruption can be dealt through developing economy if they have no an effective anti-corruption law (may be Taiwan that you are wrongly comparing with Cambodian issue).
In both Communist or Democratic Systems that anti-corruption is the cornerstone for their economic development and social security. But Cambodia is alien or a strange country that government focuses on economic development without paying attention with anti-corruption law.
Corruption happened with top leaders and it is becoming rampant because the lower corrupted officials, just do it to bribe top leaders. Current issue of corruption in Cambodia is like this. It is a severe social virus that is worse than AIDS.
Cambodian top leaders are the spearhead of rampant corruption. In any time, any natural treasure that is more valuable than present oil, still cannot make Cambodians get up from poverty line. All the national money will only help sustain those corrupted and dictator leaders to last their power...you get a sense now? For example, Zimbawe...etc
KY
8:21AM
Don't fool the information of KMT, after fifty years in power KMT became the notorious political party in Taiwan who committed crime like plundering national assets and vote-buying openly.
Read this article to insight your fool understanding about Taiwan.
http://www.soas.ac.uk/taiwanstudiesfiles/workingpapers/fell1.pdf
http://www.soas.ac.uk/taiwanstudiesfiles/workingpapers/fell1.pdf
8:33, I know about the KMT, but they developed the island out of rubble within 40years or so and made virtually all Taiwanese people very proud. So what, if they wasted a few troublemakers on the way?
Anyway, we got proof for our plan against corruption, and you only got fluky theory on fighting corruption by the stupid Anti-Corruption law ... that has not been done anywhere on this planet. Am I wrong?
If the govt has oil, they will no longer need int assistance, therefore nobody can put pressure on govt to reform; there is no way that the anti-corruption law ever pass!!!
9:27, Anti-corruption law is for showing only. It will not work in right now.
9:42AM
- corruption in Taiwan and Cambodia is very different (people, place, system of corruption...)
- if having or not having law of anti-corruption is still the same like you said, we need to change leader in order to dismantle corruption veins.
According to research, i don't see that Taiwanese people are proud because it is led by corrupted leaderssss...you fool with your assumption
ky
Stop being ignorant, 12:44. There is no assumption but fact. And I didn't said anything about being proud of the dictatorship either, but proud of their success, which is what Cambodia needed badly right now.
As for Anti-Corruption, it is only nice to give confidence to investor to come to invest in Cambodia, but it will not be practical to arrest every other person in Cambodia for failing temptation or corruption according to your stupid rule-of-law.
The law is not designed to arrest or catch all the people but it is designed to protect the public and also the people who are doing business with the public!
Oh yeah, and how are you going to protect the business and the public with millions of people who corrupted, extorted money, bribed to get a few dollars? Remember, if you don't use the rule-of-law properly, you'll kill it. In other word, if the court let anyone get away with corruption, this will become case law, and they required to let everyone to get away with corruption, rich or poor.
To 2:54PM
Listen! There must be laws for everything unless it is very trivial! The law is designed to hold people accountable for their misconduct!
You need to understand that law is meant to be broken and sometime bad people get caught and sometime they don't but most bad people will continue to break the law again and again until one day they get caught!
Just have the damn corruption law in place and those bad people who continue to commit corruption will be hold accountable by the law and they will serve time in prison!
This concept is so simple and don't make it harder than it is!
Yeah, but it is un-democracy to arrest half of the citizens of the country. There wouldn't be anyone to vote in the next election.
Who said life is fair? Why don't you blame God!
No, we never blame God for anything. This is an imperfect universe and life in it will also be imperfect among everything else.
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